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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Chatham Lodging Trust REIT (CLDT) is a stock many investors are watching right now. CLDT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.77. This compares to its industry's average Forward P/E of 16.66. CLDT's Forward P/E has been as high as 8.70 and as low as 5.56, with a median of 7.10, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CLDT has a P/S ratio of 1.95. This compares to its industry's average P/S of 4.04.
Another great REIT and Equity Trust - Other stock you could consider is Piedmont Realty Trust, Inc. (PDM), which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Furthermore, Piedmont Realty Trust, Inc. holds a P/B ratio of 0.72 and its industry's price-to-book ratio is 1.97. PDM's P/B has been as high as 0.84, as low as 0.46, with a median of 0.63 over the past 12 months.
These are just a handful of the figures considered in Chatham Lodging Trust REIT and Piedmont Realty Trust, Inc.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CLDT and PDM is an impressive value stock right now.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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